Why would any sane person make a deal to terminate this contract? Maybe settle for $300 mil assuming the NBA gets vicious after the brothers die and pass the rights on to heirs.
I'm confused as to why the NBA was so quick to just offer the 1/7 of what would have been the TV revenues. Why not like 1/100? It's not like they'd be doing any labor for it. Even Mack Brown had a limit with his buyout.
I'm assuming they made a mistake in the article. They've "only" made $300 mil in almost 40 years. This year's take is $19 mil of a $7.4 billion with a B contract however I don't know the number of years. If that's a ten year deal then 1/7 of that would be over $100 mil a year.
Any way you slice it those dudes have a sweet life to rake in $19 mil a year to do absolutely nothing.
Sorry, to more directly answer your question, TV revenues were virtually nothing compared to now so they were offering chump change at the time not realizing how big tv would become. They relied on filling arenas and selling beer to make money. This one assumption bit them in the *** and I love it.